Disconnected Youth: A Look at 16 to 24 Year Olds Who Are Not Working or In School Introduction A young person’s detachment from both the labor market and school is an indicator that he or she may not be adequately making the transition to adulthood. Referred to as “disconnected” in the social science literature, youth who are neither working nor in school may have difficulty gaining the skills and knowledge needed to attain self-sufficiency. Without adequate employment, these youth may also lack access to health insurance and disability benefits, and forego the opportunity to build a work history that will contribute to future higher wages and employability. Disconnected youth may also lack strong social networks that provide assistance in the form of employment connections and other supports such as housing and financial assistance. The federal government may have a vested interest in connecting youth to school and work because of the potential costs incurred in their adulthood in the form of higher transfer payments and social support expenses, as well as lost tax revenue. 1 The purpose of the report is to provide context for Congress about the characteristics of youth who are neither working nor in school, and the circumstances in which they live. A demographic profile of disconnected youth may be useful for discussions of efforts to improve the outcomes of at-risk high school students, such as through programs authorized by the Elementary and Secondary Education Act (ESEA) of 1965 and Higher Education Act (HEA) of 1965. 2 Research since the late 1990s has sought to identify and characterize disconnected youth. Based on varying definitions of the term “disconnected” and the methodology used among multiple studies, estimates of the disconnected youth population range. The Congressional Research Service (CRS) conducted an analysis of the U.S. Census Bureau’s Annual Social and Economic Supplement (ASEC) to the Current Population Survey (CPS) to more fully understand the characteristics of disconnected youth, and to provide recent data on the population. Based on select questions in the CPS, the analysis constructs a definition of disconnection that includes noninstitutionalized youth ages 16 through 24 who were not working or in school at the time of the survey (February through April 2014) and did not work or attend school any time during the previous year (2013). 3 The CPS surveys individuals in households, and not those in institutional settings, such as college dorms, military quarters, and mental health institutions. (The number and share of disconnected individuals would likely increase significantly if the CRS analysis incorporated data from surveys of prisons and jails. 4 On the other hand, figures of disconnected youth would likely be offset to some degree if youth in colleges and the military were counted.) 1 A study from 2012 examined the taxpayer and societal costs of lost earnings, lower economic growth, lower tax revenues, and higher government spending associated with youth who are not working or in school (or are otherwise not fully connected to either work or school). Collectively, these youth are described as “opportunity youth.” The study attributed the immediate taxpayer costs for an “opportunity youth” at $13,900 and societal costs at $37,450; and the future lifetime costs for opportunity youth at age 25 and older at $170,740 in taxpayer costs and $529,030 in societal costs. These estimates are in 2011 dollars. Clive R. Belfield, Henry M. Levin, and Rachel Rosen, The Economic Value of OpportunityYouth, Queens College, City University of New York and Teachers College, Columbia University in association with Civic Enterprises, January 2012, http://www.serve.gov/sites/default/files/ctools/ econ_value_opportunity_youth.pdf. (Hereinafter Clive R. Belfield, Henry M. Levin, and Rachel Rosen, The Economic Value of OpportunityYouth.) 2 For additional information about ESEA, see CRS Report RL33960, The Elementary and Secondary Education Act, as Amended by the No Child Left Behind Act: A Primer. For additional information about HEA, see CRS Report RL34654, The Higher Education Opportunity Act: Reauthorization of the Higher Education Act. 3 The CPS/ASEC is administered in February through April, though the majority of respondents are surveyed in March. 4 In 2010, the most recent year for which data are available, 79,165 youth (including those over age 18) were placed in residential juvenile justice facilities. Department of Justice, Office of Justice Programs, Office of Juvenile Justice and (continued...) Congressional Research Service 1